Trive Capital, a Dallas private equity firm, and 808 Capital Partners, see big potential for Crunch to continue growing as HVLP gyms flourish
JF Fitness of North America, a Crunch Fitness franchisee operating gyms in Virginia, Maryland and the Carolinas, has received fresh private equity funding and become one of the five largest Crunch Fitness franchisees with 24 gym locations following its acquisition of fellow Crunch franchisee Team Roldan.
Recent investments from Trive Capital, a Dallas-based private equity firm, and 808 Capital Partners will support JF Fitness in expanding its footprint in the Southeast with new gym openings and select acquisitions.
With the new funding, JF Fitness acquired Team Roldan’s eight Crunch gyms in Alabama, Georgia and South Carolina, and is eyeing further growth.
“We are delighted to partner with Trive and 808 in this next phase of our growth,” JF Fitness CEO John Freeland said. “In addition to aligning culturally, our teams possess a shared vision for the long-term success of our company, comprised of thoughtfully executing our defined growth strategy, investing in our key leaders and employees and relentlessly delivering a market-leading experience for our valued members.”
Trive Capital managing director Jared Reyes stated that Freeland, who founded Virginia-based JF Fitness in 2014, has an impressive track record of successfully launching new gyms.
“We look forward to supporting the team as they build on this track record and expand the company’s club footprint within its attractive Southeastern U.S markets,” Reyes said.
HVLP Gyms Attract Investors
Trive Capital partner Shravan Thadani referenced Crunch’s high-value, low-price (HVLP) model as a burgeoning concept in the fitness industry – one that has resonated with cost-conscious Gen Z fitness consumers who desire a gym experience that offers strength training and group fitness classes, as well as amenities such as personal training and recovery services.
“The HVLP segment remains a compelling sector for investment given the consistent, long-term growth trends we’ve seen in both the value and broader fitness categories,” Thadani said.
Crunch Is Growing Fast
System-wide, as of early 2024, Crunch had around 2.5 million members across 460-plus gyms in the U.S. and in Australia, Canada, Costa Rica, Portugal, Puerto Rico and Spain. The brand is plotting further expansion both domestically and abroad.
Crunch Fitness CEO Jim Rowley predicted that 2024 would be the fitness franchisor’s biggest year yet, with plans to increase its growth rate by 20 to 25%.
Last month, Dallas Cowboys quarterback Dak Prescott partnered with CR Fitness Holdings, the largest operator of Crunch Fitness franchise locations, to expand the brand in Dallas and beyond while also appearing in Crunch Fitness commercials and social media posts.
In addition to domestic growth, Crunch Fitness is plotting its entrance into new international markets, onboarding John Kersh, the former chief international development officer of Xponential Fitness, as its new managing director of international development.
